Legal Tip 4: Ownership Structure

Discussion in 'Legal Issues' started by Terry_w, 22nd Jun, 2015.

Join Australia's most dynamic and respected property investment community
Page 2 of 2
  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,931
    Location:
    Australia wide
    Changing ownership % will result in a CGT event.
    Stamp duty may be exempt in NSW if that property were their main residence
    But changinging from 99% to 50% will result in some issues with claiming interest going forward.
     
    Terry_w, 11th May, 2016
    #21
    dean2012ad and Jaik2012 like this.
  2. Jaik2012

    Jaik2012 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    96
    Location:
    Sydney
    @Terry_w - have a question for PPOR. Situation is this. I have put both names (mine & wife's) on loan & title while buying my PPOR. Didn't knew anything about property investment then & the importance of ownership structures. My wife is not employed & I am the sole payer of the loan. She will be starting casual work late this year but income would be less than $10K/annum. In this scenario, if I turn PPOR to IP few years down the line, will I be able to claim full interest deductions or just 50%?
     
    Jaik2012, 11th May, 2016
    #22
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,931
    Location:
    Australia wide
    Just 50% (or whatever share of the property you own)
     
    Terry_w, 11th May, 2016
    #23
Page 2 of 2